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CSHB 44(JUD): "An Act relating to reporting by permittees, licensees, and vendors; providing that a political use is not an authorized use of charitable gaming proceeds, other than proceeds from raffles; prohibiting the contribution of charitable gaming proceeds, other than proceeds from raffles, to candidates for certain public offices, their campaign organizations, or to political groups; providing that a political group is not a qualified organization for purposes of charitable gaming, other than raffles; relating to what is a qualified organization for the purpose of charitable gaming permitting; and providing for an effective date."

00CS FOR HOUSE BILL NO. 44(JUD) 01 "An Act relating to reporting by permittees, licensees, and vendors; providing that 02 a political use is not an authorized use of charitable gaming proceeds, other than 03 proceeds from raffles; prohibiting the contribution of charitable gaming proceeds, 04 other than proceeds from raffles, to candidates for certain public offices, their 05 campaign organizations, or to political groups; providing that a political group is 06 not a qualified organization for purposes of charitable gaming, other than raffles; 07 relating to what is a qualified organization for the purpose of charitable gaming 08 permitting; and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 05.15.060(a) is amended to read: 11  (a) The department shall adopt regulations under AS 44.62 (Administrative 12 Procedure Act) necessary to carry out this chapter covering, but not limited to, 13  (1) the issuance, renewal, and revocation of permits, licenses, and 14 vendor registrations;

01  (2) a method of ascertaining net proceeds, the determination of items 02 of expense that may be incurred or paid, and the limitation of the amount of the items 03 of expense to prevent the proceeds from the activity permitted from being diverted to 04 noncharitable, noneducational, nonreligious, or profit-making organizations, individuals, 05 or groups; 06  (3) the immediate revocation of permits, licenses, and vendor 07 registrations authorized under this chapter if this chapter or regulations adopted under 08 it are violated; 09  (4) the requiring of detailed, sworn, financial reports of operations from 10 permittees and licensees including detailed statements of receipts and payments; 11  (5) the investigation of permittees, licensees, registered vendors, and 12 their employees, including the fingerprinting of those permittees, licensees, registered 13 vendors, and employees whom the department considers it advisable to fingerprint; 14  (6) the method and manner of conducting authorized activities and 15 awarding of prizes or awards, and the equipment that may be used; 16  (7) the number of activities that may be held, operated, or conducted 17 under a permit during a specified period; however, the department may not allow more 18 than 14 bingo sessions a month and 35 bingo games a session to be conducted under 19 a permit; the holders of a multiple-beneficiary permit under AS 05.15.100(d) may hold, 20 operate, or conduct the number of sessions and games a month equal to the number 21 allowed an individual permittee per month multiplied by the number of holders of the 22 multiple-beneficiary permit; 23  (8) a method of accounting for receipts and disbursements by operators, 24 including the keeping of records and requirements for the deposit of all receipts in a 25 bank; 26  (9) the disposition of funds in possession of a permittee, a person, 27 municipality, or qualified organization that possesses an operator's license, or a 28 registered vendor at the time a permit, a license, or a vendor registration is 29 surrendered, revoked, or invalidated; 30  (10) restrictions on the participation by employees of the Department 31 of Fish and Game in salmon classics; and in king salmon classics, and by employees

01 of Douglas Island Pink and Chum in king salmon classics; 02  (11) the requiring of reports of all donations or contributions by 03 permittees, licensees, or vendors to political candidates or their campaign 04 organizations or to political groups; 05  (12) other matters the department considers necessary to carry out this 06 chapter or protect the best interest of the public. 07 * Sec. 2. AS 05.15.100 is amended by adding a new subsection to read: 08  (e) The department may issue a permit to a political organization for activities 09 conducted under AS 05.15.155. A permit issued under this subsection gives the 10 political organization the privilege of conducting raffles but no other forms of 11 charitable gaming. A political organization receiving a permit under this subsection 12 must satisfy all the requirements of this chapter relating to permittees. A political 13 organization may not hold or otherwise participate in a multiple-beneficiary permit. 14 * Sec. 3. AS 05.15.115 is amended by adding a new subsection to read: 15  (e) A political organization holding a permit to conduct raffles under 16 AS 05.15.100(e) may not enter into a contract with an operator to conduct, on behalf 17 of the political organization, the raffles permitted under the authority of the permit. 18 * Sec. 4. AS 05.15.150 is amended to read: 19  Sec. 05.15.150. LIMITATION ON USE OF PROCEEDS. (a) The authority 20 to conduct the activity authorized by this chapter is contingent upon the dedication of 21 the net proceeds of the charitable gaming activity to the awarding of prizes to 22 contestants or participants and to [POLITICAL,] educational, civic, public, charitable, 23 patriotic, or religious uses in the state. "Educational [POLITICAL, EDUCATIONAL] 24 , civic, public, charitable, patriotic, or religious uses" means uses benefiting persons 25 either by bringing them under the influence of education or religion or relieving them 26 from disease, suffering, or constraint, or by assisting them in establishing themselves 27 in life, or by providing for the promotion of the welfare and well-being of the 28 membership of the organization within their own community, [OR THROUGH 29 AIDING CANDIDATES FOR PUBLIC OFFICE OR GROUPS THAT SUPPORT 30 CANDIDATES FOR PUBLIC OFFICE,] or by erecting or maintaining public 31 buildings or works, or lessening the burden on government, but does not include

01  (1) the direct or indirect 02  (A) payment of any portion of the net proceeds of a bingo or 03 pull-tab game to a lobbyist registered under AS 24.45; 04  (B) contribution of any portion of the net proceeds of a 05 charitable gaming activity, other than raffles, to a candidate for a public 06 office of the state or a political subdivision of the state, to the candidate's 07 campaign organization, to a political party as defined under AS 15.60, or 08 to an organization or club organized under or formally affiliated with a 09 political party; or 10  (2) the erection, acquisition, improvement, maintenance, or repair of 11 real, personal, or mixed property unless it is used exclusively for one or more of the 12 permitted uses. 13  (b) The net proceeds derived from the activity must be devoted within one 14 year to one or more of the uses stated in (a) of this section. If the net proceeds are 15 derived from raffles, the proceeds must be devoted within one year to one or 16 more of the uses stated in (a) of this section or to political uses as provided in (c) 17 of this section. A municipality or qualified organization desiring to hold the net 18 proceeds for a period longer than one year must apply to the department for special 19 permission and upon good cause shown the department may grant the request. 20 * Sec. 5. AS 05.15.150 is amended by adding a new subsection to read: 21  (c) In addition to the uses specified in (a) of this section, a permittee may 22 dedicate the net proceeds of raffles to political uses within the state. In this 23 subsection, "political uses" means uses benefiting persons through aiding candidates 24 for public office or groups that support candidates for public office. 25 * Sec. 6. AS 05.15 is amended by adding a new section to read: 26  Sec. 05.15.155. POLITICAL ORGANIZATION RAFFLES. A political 27 organization that holds a permit under AS 05.15.100(e) may conduct raffles. The 28 authority to conduct the raffles under this section is contingent upon the dedication of 29 the net proceeds of the raffles to political, educational, civic, public, charitable, 30 patriotic, or religious uses in the state and to the awarding of prizes to contestants or 31 participants. "Educational, civic, public, charitable, patriotic, or religious uses" means

01 those uses described in AS 05.15.150(a). "Political uses" has the meaning given in 02 AS 05.15.150(c). The net proceeds derived from raffles under this subsection must be 03 devoted within one year to one or more of the uses described in this section. A 04 political organization desiring to hold the net proceeds for a period longer than one 05 year must apply to the department for special permission and upon good cause shown 06 the department may grant the request. 07 * Sec. 7. AS 05.15.690(34) is amended to read: 08  (34) "qualified organization" means a bona fide civic or service 09 organization or a bona fide religious, charitable, fraternal, veterans, labor, 10 [POLITICAL,] or educational organization, police or fire department and company, 11 dog mushers' association, outboard motor association, or fishing derby or nonprofit 12 trade association in the state, that operates without profits to its members and that has 13 been in existence continually for a period of three years immediately before applying 14 for a license; the organization may be a firm, corporation, company, association, or 15 partnership; 16 * Sec. 8. This Act takes effect January 1, 1996.